HCC CONFIRMS WTC LOSSES

Houston-based HCC Insurance Holdings Inc. confirmed its net loss from the World Trade Center disaster would be approximately $30 million before tax. Losses are expected to arise primarily from the property, A&H and WC reinsurance business written by HCC’s largest subsidiary, Houston Casualty Company. HCC has contributed an additional $50 million of capital to Houston Casualty since June 30. Chairman and CEO Stephen L. Way said HCC is increasing the financial base of the subsidiary “to take advantage of the increased opportunities that we expect to see in 2002.” Way added that HCC believes rates will continue to rise and that conditions in its specialty lines will further improve for at least the next two years. HCC increased its overall capitalization substantially this year by raising equity of approximately $150 million in March and a further $170 million from a convertible debt offering in August. In September the company said it would begin offering surety coverages on Oct. 1 through its subsidiary U.S. Specialty Insurance Co. Way said HCC’s pending acquisitions of ASU International Inc., an underwriting agency focusing on specialty lines of insurance, and Marshall Rattner Inc., the parent company of Professional Indemnity Agency Inc., an underwriting agency based in Mount Kisco, N.Y., are both proceeding and should close shortly.

Topics Profit Loss